That's ridiculous if they try to fix that thing. They'd basically have to replace/rebuild everything from the A-pillar forward. Plus good luck trying to sell it someday with that much damage on the record.
Anyhow, I'm guilty of following too close sometimes myself, but I usually try to give myself an out (e.g., changing lanes). I'm usually not worried about being able to brake in time (since the FiST can out-brake most cars on the road in a panic stop situation), but I'm more worried about someone running into the back of me if I slam on the brakes. People do crazy shit all the time. You gotta give them room to do it without them or someone else killing you.